Slovakia approves 2027 budget proposal with 4.94% GDP deficit

The Slovak government has approved the state budget proposal for 2027, projecting revenues of 27.911 billion EUR and expenditures of 35.666 billion EUR, resulting in a deficit of 7.754 billion EUR (4.94% of GDP). Finance Minister Ladislav Kamenický defended the proposal as a responsible compromise that complies with fiscal rules and European Commission standards, despite the deficit being higher than the 3% target previously aimed for by the administration.

To prepare for potential legislative hurdles or a Constitutional Court ruling, the ruling coalition has introduced amendments to the rules governing a budgetary provisional regime. These changes would grant the Finance Minister greater flexibility by removing restrictions on monthly spending limits, allowing the state to function more normally if the budget is not passed. The opposition has criticized these moves as a “back door” to bypass fiscal constraints and avoid presenting a balanced budget.

In related fiscal news, the Czech State Environmental Fund (SFŽP) is projected to have expenditures of approximately 44 billion CZK next year, while the Czech Ministry of Finance's revenue forecasts for 2026-2027 have been assessed as realistic by the Budgetary Forecast Committee.